MATCHING
Using the above figure, identify the letter of the choice that best matches the figure.
-#2
Definitions:
Pro Forma
Financial statements prepared using certain assumptions or projections, designed to present a company's expected financial position.
Retained Earnings
The portion of a company's profits not distributed as dividends to shareholders but kept back in the company to reinvest in its core business, or to pay debt.
Dividend Payout Ratio
A financial ratio that indicates the percentage of a company's earnings paid to shareholders in the form of dividends.
Net Income
The total earnings of a company after subtracting all expenses from revenue, also known as the bottom line.
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